It’s getting more obvious each day that there have been no better time to buy property: your own home or investment one. New official figure from NSW government confirm that it’s become quite obvious now that it’s cheaper to buy a property than rent a property. (If you want to read the original news, read this)
So, if you are sitting on the fence wondering whether to buy or rent a property, read on below, made up your mind and go get your property ! Of course, this apply also for all the property investor out there ! Good long term investment that cannot be more obvious than this…
Reason Why You Should Buy Now!
- The price of the property itself is lower than previous year
- The interest rate for the home loan is at record low. Do you know that the official interest rate now is sitting at 45 years low ? Means: the only cheaper than this was 45 years ago!
- Government give you free money (Sorry, Aussie only): For NSW resident you will get maximum $24,000 to buy a brand new home ($21,000 if you live outside NSW) or $14,000 if you buy existing one. Read this for more info.
- The renting is more expensive than buying:
- Rent 2 bedroom unit cost you $350 per week, or around $1516 per month ($350 x 52 weeks then divide by 12 months)
- You can buy 2 bedroom unit at $250,000. With interest rate of home loan around 5%, your monthly payment will be only around $1342 per month.
- Check your number online here (The actual repayment after all cost only can be determined after all paperwork has been submitted)
- You don’t want to compete with the migrant from overseas. Sydney only, received an inflow of thousands migrant per week. Sooner or later they will need their own place to call home, their best alternative will only RENTING (they are not eligible to take home loan before become permanent resident), then you don’t want to compete with them for a place for rent in Sydney. Buy one for yourself. Remember, especially if your rent is out of your initial contract, your land lord can actually increase the rent every single month. If somebody offer the landlord $400 a week rental and you only pay $290 a week since you have been living there for years, if you were the land lord who do you choose ?
- With building industry is also in recession (less and less new property is available) while the migrant to Australia is still in high number, it’s only time before the price of the property will shoot up again. At the end the fundamental of economy of supply and demand will take charge. At this moment, supply is in abundance, get that one quickly before it become rare.
What to do Now?
- Go find a good mortgage broker. Ask me if you don’t have one! Why You Should Always Use Mortgage Broker For Your Homeloan
- Go home hunting in the internet NOW!
- Meet with your mortgage broker first, before inspecting the property!
- Start tidy up your document. Your broker will need it soon: Official ID, bank statement, bill statement, loan statement, salary slip, etc…
Read this article for more info: Getting Your First Home Loan or Mortgage: Not That Hard!
Happy home hunting !